occurrences

The company released its 2024 semi-annual report: in the first half of 2024, the company achieved revenue of 1.367 billion yuan, a year-on-year increase of 2.61%; the company achieved net profit of 0.347 billion yuan in the first half of 2024, an increase of 28.80% over the previous year; realized net profit without deduction of 0.329 billion yuan, a year-on-year increase of 25.98%. Among them, Q2 achieved revenue of 0.735 billion yuan, a year-on-year increase of 0.18%, and realized net profit to mother of 0.182 billion yuan, an increase of 6.08% over the previous year.

Commercial catering refrigeration equipment increased steadily. Overseas regions contributed mainly by the 2024Q1/Q2 companies to achieve revenue of 0.631/0.735 billion yuan, respectively, with a year-on-year increase of 5.60%/0.18%. By product, 24H1 commercial catering refrigeration equipment/Western kitchen equipment/buffet equipment achieved revenue of 1.014/0.215/0.072 billion yuan respectively, with year-on-year changes of 3.5%/-10.1%/-10.2%, respectively.

By region, 2024H1 achieved revenue of 1.291/0.074 billion yuan overseas and domestically respectively, up 6.49%/-37.99% year-on-year respectively, mainly due to insufficient effective domestic demand.

The reduction in shipping costs improved profit levels. In terms of the three fees, the gross margin and net profit margin of H1 Company were 46.51%/25.36% respectively in 2024, up 5.79pct/5.16pct from the previous year, mainly benefiting from the decline in shipping costs. In terms of expenses for the period, 2024H1's sales/management/finance rate was 13.07%/5.86%/-3.13%, with year-on-year increases and decreases of -0.85/+0.36/+0.96pct, respectively. The change in financial rate was mainly due to a decrease in exchange earnings. The company's R&D rate during the same period was 1.85%, down 0.19pct from the previous year. This is a long trial experience period for intelligent and chain products developed in this phase, and direct investment was low due to the fact that it has not yet been transferred to small-batch verification.

New intelligent products have received more orders, and production capacity and marketing networks have continued to improve the company's global product layout. The company's “automatic french fries packing machine” product won the 2024 Kitchen Science and Technology Innovation Award from the American Catering Association Exhibition, which has attracted the cooperation of more American chain customers and is expected to gain more market share in the restaurant chain. On the production capacity side, in the first half of 2024, the company continued to conduct field research to advance the “85 Country Plan”. The construction of the UK's own overseas warehouse was completed, and construction work on the French owned warehouse was carried out steadily. Furthermore, the construction of the white steel production workshop at the Thai production base has been carried out, and the commissioning of related equipment has been initially completed.

Investment advice and profit forecasting

Yindu Co., Ltd. is deeply involved in commercial catering equipment. As the company's global layout continues to advance, we are optimistic about the marginal improvement brought to the company's profitability by the return of shipping charges in the short term. In the medium to long term, we believe that the company's new intelligent products such as universal steaming ovens and smart french fries robots have a volume base. The company is expected to achieve revenue of 2.995/3.345/3.714 billion yuan in 2024-2026, net profit to mother of 0.658/0.753/0.855 billion yuan, EPS of 1.55/1.77/2.01 yuan, corresponding PE of 15.76/13.78/12.13 times, maintaining a “gain” rating.

Risk warning

Risk of overseas business development falling short of expectations, risk of market demand falling short of expectations, risk of exchange rate fluctuations.